MBIA’s (MBI) stock soared Thursday as rumors circulated suggesting Bank of America (BAC) agreed to settle pending claims with the bond insurer. MBIA alleges it was left holding the bag on toxic mortgages it insured for Countrywide Financial, which was later acquired by Bank of America. A source told HousingWire there were rumors on Wall Street that a settlement offer was made to MBIA by BofA, but no details were available as of Thursday afternoon. Bloomberg first reported the story, citing anonymous sources familiar with the agreement. MBIA had no comment. BofA couldn’t immediately be reached. An analyst with CreditSights predicted a possible settlement between the bond insurer and Bank of America last week as he raised his outlook for MBIA. At the time, Rob Haines with CreditSights said any settlement between MBIA and Bank of America would add liquidity that could help the insurer throughout the course of the next few years. Earlier this month, an appeals court refused to throw out a fraud claim that MBIA brought against BofA and Countrywide. In the suit, MBIA alleged Countrywide fraudulently represented mortgage-backed securities that MBIA ended up insuring. Write to Kerri Panchuk.

Most Popular Articles

Fannie Mae, Freddie Mac watchdog prepping for "massive IPO"

The watchdog for Fannie Mae and Freddie Mac is interviewing Wall Street firms to handle a public offering that would dwarf any IPO in history, Fox says.

Dec 09, 2019 By

Latest Articles

Most lenders expect to keep making big money on mortgages

Recent data from the MBA revealed that lenders are now making more money per loan than they’ve made in almost seven years. And a new report from Fannie Mae suggests that most lenders believe they’ll keep making that much money per loan for the foreseeable future.

Dec 12, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please